On May 24, 2023, Loop Capital Markets acted as a co-manager on a $2.5 billion senior unsecured notes offering for JPMorgan Chase & Co. The 10-year bond is rated A2/A+.
Use of proceeds are earmarked for general corporate purposes.
On May 23, 2023, the City of San Antonio, Texas – Electric and Gas Systems (CPS Energy) priced its $636.580 million Revenue Refunding Bonds, New Series 2023AB with Loop Capital Markets serving as the bookrunner and lead dealer manager for the tender financing. Since 2021, there have been many tender offers in the municipal market, and this transaction represents the largest tender offer in the State of Texas during this timeframe.
The New Series 2023A Bonds were issued to takeout $500 million of commercial paper that initially financed Winter Storm Uri costs, and the New Series 2023B Bonds were issued to purchase the accepted tendered bonds. $823.610 million of CPS Energy’s Taxable New Series 2020 and Taxable New Series 2022 Bonds were offered for tender. Of which, $218.935 million (or 26.580% of the offered amount) of the target bonds were tendered by investors and accepted by CPS Energy. In connection to the tender, CPS Energy achieved $14.238 million PV savings, or 6.503% – resulting in $28.579 million of cashflow (gross) savings. The tender for the taxable bonds was financed on a tax-exempt basis. The tax-exempt refunding bonds were sold with 4.00% – 5.50% coupons with a call date in 2033, giving CPS Energy greater option value for the potential future refunding of these Bonds since the refinanced taxable bonds had very low coupons.
The transaction came to market during the current U.S. Treasury debt default discussions, where there was significant volatility in the interest rate markets leading up to the projected June 1st deadline. Despite challenging market conditions, the transaction generated $1.191 billion of total priority orders from approximately 50 accounts, reflecting 1.8x overall subscription. At the end of the order period, there was a balance of $108.960 million. An extended order period was then held for the benefit of the syndicate after the verbal award. At the end of the extended order period, the Firm underwrote $29.775 million of the Bonds.
On May 22, 2023, Loop Capital Markets acted as a co-manager on a two-tranche, $1 billion senior unsecured notes offering for National Securities Clearing Corporation. The bonds are rated Aaa/AA+ across 3- and 5-year tranches.
Use of proceeds are earmarked for general corporate purposes and debt repayment.
On May 17, 2023, Loop Capital Markets served as Sole Manager for Jefferson Union High School District’s (San Mateo County, CA) $42.5 million General Obligation Bonds, 2020 Election (Measure Z), Series A (“2020A Bonds”) and $22.4 million 2023 General Obligation Refunding Bonds (“2023 Refunding Bonds”) (collectively, the “Bonds”) rated AA- by S&P.
The 2020A Bonds’ proceeds will be applied to finance school facility improvements, authorized by District voters at an election held in November 2020 (Measure Z). The 2023 Refunding Bonds’ proceeds will be applied to refinance on a current basis the District’s General Obligation Bonds, 2012 Election, Series A (issued in 2013). Our bankers worked closely with the District’s Municipal Advisor to tailor each series’ amortizations to achieve the District’s tax rate objectives for the two, separate underlying Bond Authorizations.
To assist in the marketing effort, our banking team researched the existing top reporting holders of the District’s outstanding GO Bonds, as well as other top reporting holders of California K-12 GO Bonds. Loop’s sales force generated over $367 million in orders from 39 unique accounts (5.7x oversubscription). This included 35 new investors (not previously reporting holders of the District’s GO Bonds) and four repeat buyers. Despite large “cuts” (increases) in the MMD Index on the day of pricing, ranging from 4-12 basis points, our desk was able to leverage the size and diversity of the order book to tighten spreads by three to seven basis points across the curve. Ultimately, the new money 2022A Bonds achieved an all-in TIC of 3.669%, and the 2023 Refunding Bonds generated over $1.5 million of gross taxpayer savings ($1.2 million present value, or 4.67% NPV).
On May 17, 2023, Loop Capital Markets was mandated as an active book-runner B/D on a $500 million MTN offering for The Bank of New York Mellon. The 3-year bond is rated Aa2/AA-/AA+. This transaction marks the first notes issuance for a global systemically important bank, led entirely by minority, veteran- and woman-owned firms as book-runners.
Use of proceeds are earmarked for general corporate purposes.
On May 17, 2023, Loop Capital Markets served as a co-manager on a $128 million follow-on stock offering for Vivid Seats, Inc.
Selling shareholders will receive all of the net proceeds from the offering.
On May 17, 2023, Loop Capital Markets served as a co-manager on a $345 million follow-on stock offering (including the green shoe) for Hess Midstream LP.
Selling shareholders will receive all of the net proceeds from the offering.
On May 17, 2023, Loop Capital Markets served as a co-manager on a $125 million follow-on stock offering for EVgo, Inc.
Selling shareholders will receive all of the net proceeds from the offering.
On May 17, 2023, Loop Capital Markets acted as a co-manager on a $1.3 billion senior unsecured notes offering for BlackRock, Inc. The 10-year bond is rated Aa3/AA-.
Use of proceeds are earmarked for general corporate purposes.
On May 16 and 17, 2023, the Philadelphia Redevelopment Authority sold its $124.080 million City Service Agreement Revenue Bonds, Series A (Neighborhood Preservation Initiative (“NPI”)) (Federally Taxable Social Bonds) (the “Series 2023A Bonds”) and Series B of 2023 (NPI) (Tax-Exempt Social Bonds) (the “Series 2023B Bonds”) and City Service Agreement Revenue Refunding Bonds, Series C of 2023 (Neighborhood Transformation Initiative (“NTI”)) (Tax-Exempt) (the “Series 2023C Bonds, and collectively, the “Series 2023ABC Bonds” or the “Bonds”). Loop Capital Markets served as bookrunning senior manager.
The Bonds are rated A1 (Stable), A (Positive) and A (Stable) by Moody’s, S&P and Fitch, respectively. Bond proceeds were used to (i) finance certain costs of the NPI Program, including certain program-wide administrative costs, (ii) refund certain outstanding Revenue Refunding Bonds, Series 2012 (City of Philadelphia NTI) and (iii) pay costs of issuing the Series 2023ABC Bonds. The borrowing is the second transaction under the NPI Initiative and will provide $100 million in project funds. The City self-designated the Series 2023A and 2023B Bonds as Social Bonds.
The Firm reviewed the rating agency presentation and developed the investor presentation with the City and Co-Financial Advisors which was viewed by 20 investors. Throughout the pre-marketing process, the Firm provided investor feedback to the City and Co-Financial Advisors. The City and Authority received strong interest with over $234 million of priority orders or 2.9x overall subscription for the taxable series and over $86 million of priority orders or 2.0x overall subscription for the tax-exempt tranches. 20 investors ultimately participated in the taxable tranche while 10 investors participated in the tax-exempt tranches. Due to strong investor demand, the Firm was able to tighten spreads on the Series 2023A Bonds by 5-12 basis points for several maturities between the Indications of Interest and Launch periods. The Bonds had an All-In TIC of 5.09% and the refunding achieved present value savings of 2.1% of the refunded par amount.
